BG051 Premises

Taxco Business Guide

Property Issues

Objective

The objective of this business guide is to summarise important considerations regarding the site or premises selected for the proposed business and how Taxco can assist therewith in your business.

Introduction

There are certain minimum requirements for a site of any business and although they may vary from the type of business i.e. wholesale or retail, much of the criteria remain the same.The following criteria should be considered when making the final choice if the premises offered to you is the right one for your business:

Site Selection Criteria

Actual characteristics of the site:

Size

Amenities available

Levies

Find out if any new zoning is being undertaken by the local municipality.

Ease of access

Parking facilities

Signage

Visibility

Source of customers

What is the nature of the businesses surrounding the proposed location?

Proximity to competitors Closeness to prime location Potential for expansion Store frontage Ventilation Electrical requirements Other tenants Suppliers Total suitability of site A professional or unique look will enhance the image of your business.

Issues to address with the prospective Landlord

Monthly rental.

Is the monthly rental linked to a turnover clause?

What is the period of the lease?

Does the lease have an early-out clause?

Are there any restrictions in the lease which could prevent you from offering certain products or services in your business?

What are your security requirements and does the landlord provide sufficient security to meet your needs?

What access and parking facilities are available and are these sufficient?

What is the landlord prepared to provide or pay for regarding the set up of the business?

Is the landlord prepared to offer a rent-free period?

Is the landlord prepared to give you a guarantee that he/she will not let any other premises

in the same complex to a direct competitor of yours?

Who is liable for repairs and maintenance to the building/premises?

Who is responsible for payment of the municipality expenses?

How can Taxco help?

You will need to consider the design and cost of your premises very seriously as a significant portion of your hard earned profits could first go to the landlord before you earn a cent. In some cases it may be prudent to pay a higher rent if linked to turnover, as you will only pay rent on what the premise location will bring in for your business, in other cases you may have to consider factors such as pricing, location or your opposition , whatever the case, contact us to give you professional advice on the right premises for your envisaged business, costing and lease agreement considerations, so that you do not sign up for something that may turn out to be very costly in the long run. Let Taxco help you to plan and advise you on your premises so that the lease contract you will most probably sign personal surety on will make business sense.

For more details, Contact Us now to discuss how we can assist you to make an informed decision and possibly save a lot of money by avoiding the common pitfalls when starting a business.

This Guide is subject to the Terms and Conditions of Use of Taxco Services and their Website.